Wedbush Issues Negative Outlook for CarMax Earnings

CarMax, Inc. (NYSE:KMX) – Equities research analysts at Wedbush cut their Q4 2025 EPS estimates for CarMax in a note issued to investors on Tuesday, December 17th. Wedbush analyst S. Basham now anticipates that the company will post earnings per share of $0.56 for the quarter, down from their previous estimate of $0.60. Wedbush currently has a “Outperform” rating and a $95.00 price target on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.01 per share. Wedbush also issued estimates for CarMax’s FY2027 earnings at $4.26 EPS.

Several other research analysts have also recently weighed in on the stock. Evercore ISI boosted their price objective on shares of CarMax from $81.00 to $83.00 and gave the stock an “in-line” rating in a research report on Tuesday, December 3rd. Royal Bank of Canada restated an “outperform” rating and issued a $82.00 price objective on shares of CarMax in a report on Wednesday, October 16th. BNP Paribas upgraded shares of CarMax to a “strong sell” rating in a research report on Friday, September 27th. Needham & Company LLC restated a “buy” rating and issued a $90.00 price target on shares of CarMax in a research report on Wednesday, October 16th. Finally, Stephens initiated coverage on CarMax in a report on Thursday, December 5th. They issued an “equal weight” rating and a $86.00 price objective for the company. Four investment analysts have rated the stock with a sell rating, five have assigned a hold rating and six have issued a buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $81.00.

CarMax Stock Performance

Shares of NYSE KMX traded up $2.97 during mid-day trading on Thursday, hitting $84.39. The company had a trading volume of 1,658,185 shares, compared to its average volume of 1,919,445. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.25 and a quick ratio of 0.68. The business’s 50-day simple moving average is $78.50 and its 200-day simple moving average is $77.50. CarMax has a 12 month low of $65.83 and a 12 month high of $91.25. The firm has a market cap of $13.07 billion, a P/E ratio of 31.73, a PEG ratio of 1.76 and a beta of 1.71.

CarMax (NYSE:KMX) last posted its quarterly earnings results on Thursday, December 19th. The company reported $0.81 earnings per share for the quarter, topping analysts’ consensus estimates of $0.62 by $0.19. CarMax had a net margin of 1.61% and a return on equity of 6.83%. The business had revenue of $6.22 billion for the quarter, compared to the consensus estimate of $6.05 billion. During the same period in the prior year, the business posted $0.52 earnings per share. CarMax’s revenue for the quarter was up 1.2% compared to the same quarter last year.

Hedge Funds Weigh In On CarMax

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Sumitomo Mitsui Trust Group Inc. lifted its holdings in CarMax by 3.2% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 351,361 shares of the company’s stock worth $27,188,000 after buying an additional 10,898 shares during the period. World Investment Advisors LLC purchased a new stake in shares of CarMax during the third quarter worth $6,942,000. Eagle Rock Investment Company LLC acquired a new stake in CarMax during the third quarter worth about $747,000. Neo Ivy Capital Management purchased a new stake in CarMax in the 3rd quarter valued at about $3,934,000. Finally, iSAM Funds UK Ltd acquired a new position in CarMax during the 3rd quarter worth about $537,000.

About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.